2024 and beyond

In 2023-24, all levels of Australian government raised around $800 billion (29.5% of GDP) in taxation revenue. 

The 2010 ‘Henry Review’ reported that Australian governments levied a total of 125 different taxes[27], however just 3 of these taxes (personal income tax, company tax and GST) accounted for around three-quarters of the revenue raised, with personal income tax alone accounting for over a third.

The PBO’s projections for the Australian Government’s budget are published annually in Beyond the budget. The latest edition, published in June following the 2024-25 Budget, discussed Australia’s significant dependence on bracket creep to achieve future budget surpluses.

Our analysis shows that if the Australian Government were to maintain average personal income tax rates at the 2024-25 level by increasing the income thresholds each year, the share of personal income tax would remain broadly stable. However, the budget would remain in deficit indefinitely without other revenue enhancing measures.[28] This is discussed further in Chapter 4.

Combined forecasts for state governments are published in our annual National Fiscal Outlook, published in October.